'That clock's ticking' as deed restriction continues to hold up State Theater's IMAX plans

Apr. 27—JOHNSTOWN, Pa. — Plans to bring an IMAX movie screen to the State Theater of Johnstown are at a standstill that, according to one party involved in the process, might not be resolved without legal action being taken.

The nearly century-old venue at 336 Main St. in downtown Johnstown was being transferred from its current owners — Medical Properties Trust, an investment group used by Duke LifePoint Healthcare, the parent company of Conemaugh Health System — to the Johnstown Redevelopment Authority when a deed restriction was discovered that threw the plans into jeopardy.

The restriction stated that "the above premises will not be used as a motion picture theatre" and that "said restriction and condition shall be a covenant running with the land."

The language was attached to the property in 1976 when it was transferred by County Amusement Co. to what was then Lee Hospital for $1.

County Amusement Co. still exists today and owns Richland Cinemas, the largest movie theater in the Greater Johnstown region.

Since the deed restriction issue is unresolved, the intended agreement for the JRA to lease the venue, which is integrated into Conemaugh's Lee Campus, to the nonprofit Johnstown State Theater Foundation, which hoped to eventually buy the venue, is stalled.

Ed Troll, owner and general manager of County Amusement Co., responded to an interview request by saying he does not talk about private negotiations.

Eric Reighard, the Johnstown State Theater Foundation's co-executive director, confirmed that negotiations have taken place, but said he feels "pretty powerless at this point" since Troll has the ability to enforce the deed restriction if he chooses.

Reighard's opinion is that waiving the deed restriction would benefit the State Theater project, Johnstown and the entire area.

"We're just caught in a cycle," Reighard said in an interview at the theater Thursday. "We can't really pursue legal action until we hear from him. We don't want it to go to legal action because that's just expensive. It draws it out.

"Our biggest opponent right now is time, because the building needs the roof put on, but we can't put the roof on until it's transferred, and we can't transfer it until this deed restriction is lifted or changed, because essentially the whole purpose of this business is primarily to show movies."

Reighard added: "I think the thing that really frustrates me is I was hoping — and this is probably the biggest naive statement that a young person in any town can make — I was just hoping that this could be a big project to show that Johnstown is ready to take that next big step for a big project, gather young people."

The Johnstown Redevelopment Authority declined to comment. Conemaugh Health System did not respond to a request for an interview.

'That clock's ticking'

The State Theater sat largely unused for many years until Discover Downtown Johnstown Partnership launched a movie pilot program in 2019 to see if any local interest existed in reviving the venue.

A foundation was eventually formed. Concerts, film viewings and other events have been held. Plans have been discussed for a potential speakeasy and other amenities, along with Airbnb space.

But a 60-foot-wide IMAX screen that could show first-run movies was envisioned as the main draw. A contract was finalized in spring 2023 with the hopes that films could be shown as early as this year's summer blockbuster season. That schedule will not happen.

Reighard said informing IMAX representatives about the delay caused by the deed restriction was "probably the scariest call I've ever had to make," but said that the company has been "wonderful" and "really understanding" of the overall mission and current situation.

The IMAX representatives "haven't given us a strict timeline, but again, that clock's ticking," Reighard said. "At some point, as a major corporation, they're going to say, 'You really need to move on this.' "

Without an IMAX screen, another plan could be developed, but it would "not (be) as revolutionary as we want it to be here," said Troy Smajda, the foundation's marketing director.

As the standstill continues, the theater is continuing to deteriorate.

Rain — especially heavy rainfalls such as the storms the city experienced earlier this spring — causes water to leak into the venue, which causes the historic, ornate horsehair plaster to crumble, leaving holes in the wall.

"Once that stuff's gone, it's gone," Reighard said. "There are very few people in this country that can even do that kind of work anymore, let alone the price to rehab that.

"And we've lost probably a good 10% of it in the upper balcony level — and that's just what we can see, because the water runs behind the walls, under the seats, everything. It's just a real tragedy."

Foundation members want to have the roof fixed as a first step to help preserve the historic building that could become part of a modern, revitalized downtown.

Smajda said he envisions a theater where students can take field trips to watch documentaries, people with intellectual disabilities can work, and a lighted marquee brightens Main Street.

"That's more important to me than anything else, and that's just going to be lost if this goes away," Smajda said. "It's just sad."

Foundation Co-Executive Director Amanda Reighard also discussed using the theater for the overarching goal of "bridging the gap between generations, race, religion, gender," while getting millennials and Gen Xers involved in shaping the city's future.

"That's really the heart of the project," she said, "is that it's very communal and that we want everybody to feel that they're a part of it and that they can be involved in it in some way. That's one of the really sad parts if the project really does end."